Life Settlements Update – 09.28.11


Delaware Court Weighs in on Life Settlement Cases – Regulatory,Legislative and Tax Issues – Life and Health Insurance News

In PHL Variable vs. Price Dawe 2006 Insurance Trust Insurance Company, the court has affirmed the common law ability of a legally insured person or insurable trust to sell a policy on that person’s life for market value — provided that procurement of the policy is not part of a straw purchase pursuant to a prior agreement to resell to an investor, and that the procurement is not part of an illegal wager in which a third party directly or indirectly pays the premiums.

The court holds that an arrangement involving an agreement with a straw man is illegal. An illegal arrangement occurs when an investor has a pre-negotiated arrangement for an immediate transfer of ownership of the policy, and there is no insurable interest on the part of the original owner, according to the court.

The court has ruled that the “intent” of the insured to sell a policy is irrelevant. The transaction itself is legal if, at inception, the individual procuring the policy has insurable interests and does not have a pre-negotiated agreement to immediately transfer ownership.

Setback for Life Settlements –

Older Women Have 2X Mortality Risk First Year Post Hip Fx

Medical News: Mortality High in Year After Hip Fracture – in Orthopedics, Orthopedics from MedPage Today

Older women who experience a hip fracture have a twofold increase in mortality risk in the first year after the fracture, researchers found.

During the 12 months following the fracture, 16.9% of the women died, compared with 8.4% of controls, for an odds ratio of 2.3 (95% CI 1.9 to 2.8), according to Erin S. LeBlanc, MD, of Kaiser Permanente Northwest in Portland, Ore., and colleagues. They researchers adjusted for potential confounders such as age, bone mineral density (BMD), and coexisting conditions such as diabetes, hypertension, and stroke.

And the increased mortality risk during the first year remained after further adjustment for specific hip fracture risk factors such as total hip BMD (OR 2.4, 95% CI 1.9 to 3.1), the researchers reported online in Archives of Internal Medicine.